BP, Shell, ExxonMobil, Total and Chevron last week all reported lower third quarter net income compared to the third quarter of 2014, with Shell reporting a loss in the third quarter. Although earnings overall were much lower when compared to the third quarter of last year when crude oil prices were much higher, sequentially third quarter earnings compared to the previous quarter this year fared better. Refiner Phillips 66, on the other hand, reported a 58% increase in third quarter earnings compared to the previous year's third quarter.
BP last Tuesday reported a drop in third quarter profits compared to the third quarter the previous year. BP's replacement cost profit for the recent quarter was $1.23 billion (£802 million), compared with $2.38 billion a year earlier. Total revenue was $55.9 billion compared to $94.8 billion a year ago. On an underlying basis, profit for the third quarter was $1.8 billion, down 40% from $3 billion a year earlier, and 39% higher than the second quarter of 2015. In the Upstream, the underlying third-quarter replacement cost profit before interest and tax of $820 million compares with $3.9 billion a year ago and $490 million in the second quarter of 2015. In the Downstream, the third quarter underlying replacement cost profit before interest and tax was $2.3 billion compared with $1.5 billion in the third quarter last year and $1.9 billion in the second quarter. The lubricants business delivered an underlying replacement cost profit of $350 million in the third quarter, compared with $340 million in the same quarter last year and $400 million in the second quarter of 2015. BP continued to rein in spending estimates for 2015, which it now expects to be about $19 billion compared with the $24 billion-$26 billion forecast a year ago. The company also said that the total cost of the Deepwater Horizon oil spill in the Gulf of Mexico in 2010 would reach $55 billion, higher than previous estimates. Earlier this month, BP said it had agreed to pay $20 billion to settle claims in the US. To meet these costs, it is selling off assets, and expects to divest $10 billion this year, with another $3 billion-$5 billion in 2016.
Royal Dutch Shell PLC last Thursday reported a loss of $7.4 billion for the third quarter, compared to a profit of $4.5 billion in the quarter a year earlier. Adjusted for inventory changes and one-time items, earnings fell 70 percent to $1.8 billion. The company took about $7.9 billion in write-offs for operations including its recently halted exploration venture off Alaska and a canceled heavy-oil project in Canada. Shell also wrote off an additional $3.7 billion, including $2.3 billion on North American shale gas properties, because of downward revisions of the long-term outlook for the prices of gas and oil. Third quarter Upstream earnings excluding identified items were a loss of $425 million compared with a gain of $4,343 million a year ago. Identified items were a net charge of $8,218 million, compared with a net charge of $394 million for the third quarter 2014. Third quarter Downstream earnings excluding identified items were $2,617 million compared with $1,793 million for the third quarter 2014. Identified items were a net charge of $136 million, compared with a net charge of $192 million for the third quarter 2014. The company posted revenue of $68.71 billion in the third quarter compared to $107.85 in the corresponding quarter last year.
Total SA last Thursday reported a 69% drop in third quarter profit as plummeting oil prices offset a 10% hike in production. Total says its third quarter net profit fell to $1.1 billion from $3.46 billion a year earlier. Excluding one-time items and fluctuations in the value of inventories, Total said profit dropped 23% to $2.8 billion from 3.1 billion a year earlier. Revenue fell 33% to $40.6 billion.
ExxonMobil last Friday announced (estimated) third quarter 2015 earnings of $4.2 billion, down 47 percent compared with $8.1 billion a year earlier. Significantly lower Upstream realizations more than offset higher Downstream and Chemical earnings. Upstream earnings were $1.4 billion in the third quarter of 2015, down $5.1 billion from the third quarter of 2014. U.S. Upstream earnings declined $1.7 billion from the third quarter of 2014 to a loss of $442 million in the third quarter of 2015. Non-U.S. Upstream earnings were $1.8 billion, down $3.4 billion from the prior year. Downstream segment earnings nearly doubled from the third quarter of 2014 to $2 billion, up $1 billion from the third quarter of 2014. Earnings from the U.S. Downstream were $487 million, up $27 million from the third quarter of 2014. Non-U.S. Downstream earnings of $1.5 billion were $982 million higher than last year. Chemical earnings of $1.2 billion were $27 million higher than the third quarter of 2014. ExxonMobil posted revenue of $67.34 billion for the quarter. In the same period a year ago, the company reported revenue of $107.13 billion.
Chevron last Friday reported earnings of $2.0 billion for third quarter 2015, compared with earnings of $5.6 billion in the 2014 third quarter. Sales and other operating revenues in third quarter 2015 were $33 billion, compared to $52 billion in the year-ago period. U.S. upstream operations incurred a loss of $603 million in third quarter 2015 compared to earnings of $929 million from a year earlier. International upstream earned $662 million in third quarter 2015 compared to earnings of $3.72 billion from a year earlier. U.S. downstream operations earned $1.2 billion in third quarter 2015 compared with earnings of $809 million a year earlier. International downstream operations earned $962 million in third quarter 2015 compared with $578 million a year earlier.
Refiner Phillips 66 last Friday announced third-quarter earnings of $1,578 million, compared with earnings of $1,012 million in the second quarter of 2015. Adjusted earnings were $1,647 million, an increase of $645 million from the last quarter. The Chemicals segment reflects Phillips 66's equity investment in Chevron Phillips Chemical Company LLC (CPChem). Third-quarter Chemicals adjusted earnings were $272 million, compared with earnings of $295 million in the second quarter. Refining adjusted earnings were $1,052 million in the third quarter, compared with $604 million in the second quarter. Marketing and Specialties (M&S) third-quarter adjusted earnings were $344 million, compared with $182 million in the second quarter. Adjusted earnings for Marketing and Other were $291 million, an increase of $157 million from the prior quarter. Phillips 66s Specialties businesses generated earnings of $53 million during the third quarter. Revenues totaled $26.42 billion, compared with revenues of $41.05 billion in the third quarter of 2014.
The "pure refiners", including Valero, Marathon and Tesoro, reported excellent financial results for the third quarter.
